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Buying a home? California announces new forgivable loan program

California housing agencies have two new programs for residents either struggling to find an affordable home or struggling to keep a home.

SACRAMENTO, Calif. — Two California housing agencies announced new programs for prospective and current homeowners.

One offers forgivable loans to homebuyers in the state for up to 10% of the home's purchase price, and the other carries $67 million to fund projects supporting low-income homeowners

Who Qualifies?

Forgivable Equity Builder Loan - California Housing Finance Agency (CalHFA)

Californians making less than 80% of the Area Median Income in their residing county qualify. In Sacramento County, families can make up to $72,000 to qualify for the program.

Families who think they might qualify are encouraged to contact a Preferred Loan Officer to take steps towards homeownership.

If the homebuyer stays in the home for at least five years, they do not have to repay the junior loan.

The loan can be used for down payment or closing costs, including rate buydowns.

CalHome Awards - Department of Housing and Community Development

Low and very low income households can qualify for any of the 33 CalHome Program projects across the state—with the $67 million in new funding increasing resources for struggling homeowners.

Funds assist individual first-time homebuyers through deferred-payment loans for down payment assistance and home rehabilitation, including manufactured homes not on permanent foundations, acquisition and rehabilitation, homebuyer  counseling, self-help mortgage assistance or technical assistance for self-help homeownership.

A full list of local public agencies and nonprofit corporations receiving CalHome Program grant funding is available upon request. Just email alex.traverso@hcd.ca.gov.

For more information about the CalHome program administered by Housing and Community Development, click HERE.

Other resources for homeowners

CalHFA  offers the National Mortgage Settlement Housing Counseling program, which provides counseling services to California families who are in danger of eviction or foreclosure, through housing counselors certified by the U.S. Department of Housing and Urban Development.

For Californians who have  been financially impacted by the COVID-19 pandemic, CalHFA has established the California Mortgage Relief Program to help homeowners get caught up on their housing payments. The program is free, and the relief funds do not need to be repaid.

WATCH MORE: What a recent court ruling on encampments in Berkeley could mean for California

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